Collection of Case Studies 2. - Seas of Change Initiative

12. Initiative for promoting rural entrepreneurship inRwandaAuthor: Espérance MukarugwizaOrganisation: Agri-Pro FocusThis case is one of specifically prepared by Agri-Pro Focus for the “Seas of Change” event, taking place in TheHague, 11-13 April 2012.Why is the case an interesting example?The IPER Program is a joint initiative of NGO, Private Sector, Government, Research institutions and farmerorganisations who strive to develop entrepreneurship of those who will be feeding the world in 2050.1. Context and backgroundAgriculture in Rwanda is for more than 90% smallholder agriculture with average acreage of less than 0,5 ha perfamily. To boost agricultural development and food production, developing entrepreneurship of successfulsmallholders is key. It is from this perspective that ICCO, Agriterra and Terrafina in 2008 decided to join forces inRwanda to make value chains more competitive, sustainable and inclusive. They developed a joined program andnamed it IPER (Initiative pour la Promotion de l’Entrepreneuriat Rural). When Agri-ProFocus late 2008 began withestablishing Agri-Hubs other Agri-ProFocus members (SNV, IFDC, Oxfam/Novib, WUR, KIT, VHL) joined theinitiative and IPER became the major activity of Agri-Hub Rwanda. All partners committed a certain amount of timeand/or money for a 4 year period (2009-2012). In the division of labor, the idea was that APF members, throughtheir existing partner relations and activities, would cater for the facilitation and coaching of commodity-orientedAgri-Business Clusters. All Agri-Business Clusters would be facilitated in the same way and also would get theopportunity to draw upon a small basket-fund for activities to resolve “burning issues” hampering the developmentof the respective Agri-Business Cluster. In 2009 IPER started with 15 Agri-Business Clusters in 6 Value Chains. Atthe end of 2011 the number of Agri-Business Clusters had increased up to 30, involving about 250 cooperativeswith an impact on more than 7,000 households.Within 3 years IPER has developed a successful model for boosting farmer entrepreneurship. Although theprogram as such will end in 2012, Agri-Business Cluster Leaders already have indicated that they will continuepulling together chain actors to find solutions for “burning issues” in the Cluster.2. Underlying business modelThe IPER program is a way to help organized farmers develop their business. At the heart is the idea offacilitating all actors along a specific value chain in a specific area to come together and discuss how to improvethe functioning of the value chain for the gain of all (win-win solutions). The model is inspired by CASE(Competitive agricultural systems and enterprises), developed by IFDC in West Africa.In general the programme has the following elements:1) Training of local Agri-Business Cluster facilitators, mostly working for local NGO’s2) Put in place a small ‘basket-fund’ to finance quick actions (consultancies, study-trips, etc.) to resolveburning–issues.The Cluster facilitators facilitate the process-cycle of Agri-Business Cluster development:1) Identifying “Cluster Leaders” (mostly leaders of farmers-organisations) and help them to organise a multistakeholderworkshop with representatives of all actors along the chosen value chains in their respectiveareas2) During the workshop define business targets and “burning issues” which should be resolved to improvethe functioning of the chain and reduce risks and/or increase profits for all actors,3) Make action-plans, find funding ( quick actions – basket fund; investments – banks) and implementimprovements4) Evaluate results and define new targets and “burning issues”, etc.53